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Credit Cards for Beginners

11 min read

Last Updated: May 28, 2025

Table of contents

Key Takeaways

Getting approved for a credit card depends on several factors, including your credit score and income.
Credit cards for beginners include student cards and secured cards.
Paying your credit card bill on time and in full each month is one of the best ways to establish responsible financial habits.

Credit cards can be powerful financial tools. You can use a card to earn rewards, get access to helpful features, and pay for purchases over time. But credit cards can also be confusing, especially for first-time users.

If you’re considering getting your first credit card, you can start by finding out what you’ll need to apply, which type of credit card could be a good fit, and how to get the most out of your card once it’s in your wallet.

What to know before applying for your beginner credit card

In addition to basic credit card terminology, you should know what a credit card issuer is looking for before you apply for a card. Credit card companies generally want to make sure someone has the experience and resources to manage a credit card account responsibly before making them an offer. You’ll also need to meet the minimum requirements for the card. In the U.S., that typically means being at least 18 years old and having each of the following:

A U.S. address.
A Social Security number: Some credit card issuers accept Individual Taxpayer Identification Numbers as an alternative for people who don’t qualify for a Social Security Number.
Income: Applicants who are under 21 years old must have an independent ability to repay the loan to qualify for their own credit card.

Assuming you can meet these requirements, there are a few steps you can take to get ready to apply.

Check your credit score

Credit card issuers use credit scores to estimate whether applicants are likely to manage credit card debt responsibly based on their credit history. Your credit score not only influences your credit card eligibility, but also your interest rate and credit limit.

Checking your credit score can help you get a sense of what offers you may qualify for. If you have a score in the poor or fair credit ranges, you may have fewer options than someone with excellent credit.

However, if you’ve never had a loan or credit card, you might not have a credit score. If that’s the case, don’t panic. Everyone has to start somewhere, and you have options for beginning to build credit history, like secured credit cards and student credit cards.

Calculate your income

Credit card applications ask for information about your income and housing expenses to make sure you have the money to handle a credit limit. If you have low income and a high credit limit, you may have a hard time repaying your balance.

Credit card companies may consider income from various sources, such as hourly wages, an annual salary, or tips you currently earn or can reasonably expect to earn. Other examples of qualifying income may include bonus pay, commissions, income from rental property, interest, dividends, and retirement benefits paid.

If you’re 21 or older, you can also include a spouse’s income. If you’re under 21, you have to prove that you can repay your debt with your individual income. But that income can include a regular allowance or other deposit into your bank account from someone else, like a parent. So, if your parents transfer you $400 a month, for example, that might count as income. But a $400 birthday gift wouldn’t.

Compare credit card features

Ideally, the best credit card for you should offer features you value without charging unmanageable fees. In addition to credit card rewards, perks can improve your experience.

You may want a card with a user-friendly mobile banking app or online banking platform. Online and mobile banking tools often let you monitor your transactions, set up autopay, unlock rewards offers, and more. For example, the Discover App features the Discover Spend Analyzer, which categorizes your purchases and shows spending patterns.

Don’t overlook a card’s security features—they can make a big difference. Discover cards come with features like Freeze it^®, which you can use to freeze your account to prevent new purchases, cash advances, and balance transfers in seconds with our mobile app or website.¹ That way, if you ever misplace your card, you can rest assured that you won’t have to deal with unauthorized purchases.

Compare credit card fees

Depending on your credit habits, a card’s fees can end up costing you a lot in the long run. Look out for the following fees:

Annual fees. Discover has no annual fee on any of our cards, but other card issuers might charge a fee for a card with rewards and other benefits.
Cash advance fees. This is the cost for borrowing cash against your credit limit. A cash advance can help in a pinch, but it’s often pricey.
Interest fees. Your card’s annual percentage rate (APR) determines the interest your balance will accrue. If you always pay your balance in full, the card’s interest rate may not matter as much.
Foreign transaction fees. When you use your card in a country with a different currency, your card issuer may charge an extra foreign transaction fee. Discover^® has no foreign transaction fees.
Late fees. When you miss your credit card’s monthly due date, the late payment fee will increase your balance.

See if you’re pre-approved

When you submit a new credit card application, the resulting credit check could add a hard inquiry to your credit report, which could impact your credit score. To avoid an unnecessary hard inquiry, ask about credit card pre-qualification.

Credit card pre-qualification or pre-approval can show you what offers you’re likely to receive before you apply. Keep in mind that if you apply for a pre-approved offer, the credit card issuer will likely place a hard inquiry on your credit report.

See if you’re pre-approved

Choosing a credit card for beginners

You don’t necessarily need a long credit history or high income to open your first credit card. In fact, many card issuers offer options designed for people who are just beginning their credit journey. You can use these cards to begin building credit history—as long as you use them responsibly.

Student credit cards

A student credit card is a regular unsecured credit card, but it’s only available to students who are enrolled in higher education programs. Because it’s designed for people who are just starting to build credit history, a student credit card may not require a credit score or charge annual fees. If you’re in school, you may want a card that rewards relevant everyday purchases for college students, like snacks from a convenience store or coffee from the café.

Did you know?

Discover^® offers student cash back credit cards that can let you earn cash back rewards and benefits designed for college students, and begin to build a credit history². If your credit journey is just beginning, see which Discover Card may be right for you.

Learn More

Secured credit card

If you’re not in school, a secured credit card may be the best starter credit card for your circumstances. A secured card typically requires a refundable security deposit at account opening to “secure” the credit limit. If you don’t pay your credit card bills, the card issuer can apply the deposit to your balance. For Discover, your credit line will equal your deposit amount, starting at $200.³

A secured card usually has more relaxed requirements than an unsecured card because the deposit protects the card issuer. There’s no credit score required to apply for a Discover it^® Secured credit card.⁴

Store credit cards

Some retailers offer store credit cards that report your activity to a credit bureau, so you can build credit history. Many store cards are limited to the retailer that issues them, so they can be a good option if you tend to shop at the same store. Keep in mind that interest rates may be high and credit limits may be low.

Authorized users on someone else's credit card

Instead of applying for a card on your own, you could ask a trusted friend or family member to add you as an authorized user on one of their credit cards. As an authorized user you can access the account’s credit limit, sometimes with your own card. But you’re not responsible for paying the bill or managing the account.

Usually, activity from both the primary cardmember and the authorized user is reported to a major credit bureau. That means the primary cardmember’s activity may appear on your report. If the primary cardmember keeps balances low and pays bills on time, you could build a positive credit history.

Tips for getting the most out of your beginner credit card

Learning how to use a credit card wisely can take time. As you use your card more, you’ll gain a better sense of the habits that work well for you, as well as any pitfalls. The following tips can help you get started.

Look for a credit card with no annual fee

Some credit card companies charge a fee each year for keeping your credit card account open. These fees may cut into the rewards you earn. Plus, a beginner may not want to worry about covering an additional fee. Discover has no annual fee on any of our cards.

Pay the bill on time and in full

Paying your credit card bill on time each month can help you build a positive payment history, avoid late fees, and stay on top of your balance. Card issuers consider your payment “on time” only if you pay at least the monthly minimum by the due date. Missing the due date can lead to a late payment fee. And falling 30 or more days behind can lead to a late payment showing on your credit report, which may hurt your credit score.

Most credit cards offer a grace period, which means you won’t pay any interest on your purchases if you pay the balance in full and on time. However, if you pay less than the full credit card statement balance, the remaining balance carries over to the next billing statement and begins accruing interest daily.

Use your card, but keep a low balance

Unless you track your budget closely, you might be surprised to find that the small purchases you make throughout the month can turn into a big bill. Consider setting up a budgeting app or using your card issuer’s mobile app to keep an eye on your balance.

With a lower balance, you can avoid falling behind on your credit card bill and owing interest. Plus, your credit utilization rate, which is the sum of your balances compared to your total available credit, is an important factor in your credit score. The lower your credit utilization ratio, the better. A high ratio may indicate that your credit is out of control.

As a rule of thumb, it can be smart to treat your card like a debit card—don’t use it to buy something you can’t afford to purchase with cash.

Learn about the card’s rewards and benefits

If you want to earn cash back or miles on your everyday purchases, a rewards credit card may be the best starter credit card for you.

Ideally, credit card rewards should fit into your existing shopping habits. For example, if you tend to go out for lunch a few times a week, you may want a card that rewards restaurant purchases.

While credit cards with premium perks and rewards often require an excellent credit score, some credit cards for beginners offer credit card rewards too.

For example, with the Discover it^® Secured Credit Card, you earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, automatically.⁶

Discover also offers two student credit cards with rewards: the Discover it^® Student Cash Back and Chrome cards.

If you open a rewards credit card account, you should also make sure you understand your reward redemption options, like a statement credit or gift card.

Should a credit beginner apply for more than one starter credit card?

Credit cards may offer different rewards or perks, which can make opening more than one card tempting. However, it’s also easy to overspend or accidentally miss a payment if you’re trying to manage multiple credit cards. Plus, applying for two cards at once may hurt your credit score. It might make sense for you to start with one card and only apply for another once you’ve mastered your first card.

The bottom line

Beginning to build credit history may feel intimidating or confusing, but a little research can make the path much clearer. Take the time to reflect on your priorities and compare your options, from a secured credit card to a store credit card. Once you find the right fit, your responsible credit habits can lay the foundation for a strong financial future.

Important Information >

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